The purpose of this bulletin is to provide agencies with instructions for the new create and update process for 403(b) after-tax deductions.
Employees who newly elect or have an existing 403(b) after-tax deduction are affected.
As mentioned in payroll bulletin PIP-011, 403(b) plans were converted from General Deductions to Savings Plans in order to eliminate customizations and improve processing in PayServ v 9.2.
To continue to improve processing, OSC has created a new Savings Plan Type 47, CN403A, as well as new deduction code 703, CUNY 403(b) After tax.
Changes were made effective for Institution paychecks dated January 13, 2022.
OSC has converted all employees with existing after-tax deductions to the new Savings Plan Type and deduction code. Agency update will be available.
Outbound vendor files will be updated to include deduction code 703 to ensure participants with after-tax deductions are reported accurately and timely.
To enroll an employee in a Savings Plan Type 47, CN403A, agencies must navigate to the Savings Plans page (Main Menu > Benefits > Enroll In Benefits > Savings Plans). If the employee is already enrolled in a Savings Plan, a row must be added for each new Savings Plan Type. Agencies must fill in the following information for the employee’s Savings Plan:
- Plan Type 47, CN403A, for after-tax 403(b)
- Coverage Begin (first day of the current, unconfirmed pay period)
- Deduction Begin (first day of the current, unconfirmed pay period)
- Coverage Election (first day of the current, unconfirmed pay period)
- Benefit Plan CN403A for CUNY 403b Plan After Tax
- After Tax Percent, as directed/allowed
Invalid Plan Type and Benefit Plan combinations will cause an error and enrollment will not be allowed. Deductions that are not allowed for a Plan Type or Benefit (e.g., an election on an employer-only plan, an after-tax election on a pre-tax plan or a before-tax election on an after-tax plan) must not be entered.
Deductions for the Savings Plans enrollment will begin in the pay cycle based on the Deduction Begin Date entered.
Questions regarding PayServ entry can be directed to the Payroll Retirement Mailbox.
Questions regarding 403(b) eligibility may be directed to the University Retirement Plan Asset Officer: [email protected].